Point: Reform of labor laws aided our economy

By GLENN SPENCER

Sunday

Sep 2, 2018 at 2:00 AM

However, a few clouds remain on the horizon.

As Labor Day prepares to dawn, the American economy is in good health. Unemployment remains under 4 percent, more than 2.4 million jobs have been created since Labor Day last year, and GDP has expanded briskly.

While there are many factors responsible for our current state of affairs, regulatory reform must be included on the list. This has been particularly true in the area of labor law.

Take, for example, the Department of Labor. During the previous administration, the department imposed numerous mandates on employers. This has changed under the Trump administration, giving businesses more opportunity to expand and helping serve as a catalyst to our country’s record economic growth.

Here are some highlights that illustrate how improved regulatory reform is working for America’s employers:

First, the department repealed two guidance documents from the Wage and Hour Division, one that expanded joint-employer liability to hold businesses at fault for workplaces they don’t own or manage, and another that sought to limit strictly the use of independent contractors.

The Labor Department also withdrew an OSHA policy that allowed union organizers to accompany government officials on inspections of non-union worksites. It also fully repealed the Obama-era persuader regulation that sought to prevent employers from getting legal advice regarding unions.

While these are just a few examples, it is clear that the Labor Department is now emphasizing a common-sense approach to regulation and enforcement.

One can also look at the National Labor Relations Board, where the new majority has taken important steps to restore balance to labor law. In the previous administration, the NLRB repeatedly tossed out policies that had been in place for decades under both Republican and Democratic administrations, skewing the law to favor union interests above all else.

The board has already overturned the specialty health care ruling that allowed unions to form small, fractured bargaining units, even in workplaces where a majority of employees has rejected unionization.

In addition, the NLRB has done away with the Obama-era policy of scrutinizing employee handbooks, under which the board could create labor law violations out of common-place and common-sense handbook policies. These included, for example, requiring courtesy in the workplace. Somehow the previous administration considered requiring professional behavior at work against the law.

However, a few clouds remain on the horizon as illustrated by legislation recently introduced by Senate Democrats that would undermine the strong economic growth we are now seeing.

These bills, given benevolent sounding titles like the Workplace Democracy Act and the Workers’ Freedom to Negotiate Act, would eliminate right-to-work laws in 27 states, once again forcing employees to pay union dues or lose their jobs.

Both bills would strip away the democratic protections of a secret ballot during union organizing elections, exposing workers to coercion and intimidation. They would impose mandatory, binding arbitration for first contracts — potentially sticking workers and employers with unworkable contract terms.

And most damaging, they would repeal the ban on secondary boycotts, meaning that a labor dispute with a single company could suddenly involve dozens of other businesses, giving unions a license to shut down entire segments of the economy.

While these bills will not be going anywhere in the current Congress, these radical proposals must not be ignored.

This administration deserves credit for giving businesses new opportunities, which have allowed our economy to prosper. Given the right circumstances, and continued regulatory reform, it should continue to do so.

Glenn Spencer is senior vice president of employment policy at the U.S. Chamber of Commerce. This op-ed was distributed by InsideSources.com.

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